Bitcoin Brokers & Exchanges
Bitcoin brokers and exchanges provide tools to help traders capitalize on the BTC crypto market, either through owning the underlying asset or speculating on a derivative. However, selecting Bitcoin platforms is not straightforward, with different services offered and fees charged by each exchange.
In this tutorial, we review the most important factors to consider when choosing Bitcoin brokers, including regulations, platforms, mobile apps, plus safety and security measures. Alternatively, get started today with our rating of the best Bitcoin brokers and exchanges in 2024.
Bitcoin Brokers & Exchanges
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1FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2NinjaTrader
Ratings
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire Transfer, ChequeUSD -
3eToro USAInvest $100 and get $10Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
Ratings
$100$10SEC, FINRAStocks, Options, ETFs, CryptoeToro Trading Platform & CopyTraderACH Transfer, Debit Card, PayPal, Wire TransferUSD -
4Interactive Brokers
Ratings
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFMStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
5Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD -
6IQCent20% to 200% Deposit Bonus
Ratings
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
7OANDA USCFDs are not available to residents in the United States.
Ratings
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
8RedMars
Ratings
€2500.01 Lots1:30 (Retail), 1:500 (Pro)CySEC, AFMCFDs, Forex, Stocks, Indices, Commodities, CryptosMT5Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, VisaUSD, EUR -
9Capitalcore40% Deposit Bonus up to $2,500
Ratings
$100.01 Lots1:2000IFSAForex, Metals, Stocks, Cryptos, Futures IndicesWebTrader, ProEthereum Payments, Mastercard, Visa, Perfect Money, Bitcoin Payments, Debit Card, Credit Card, PayPalUSD -
10IGForex trading involves risk. Losses can exceed deposits.
Ratings
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD
Here is a short overview of each broker's pros and cons
- FOREX.com - You can trade a small range of 8+ cryptos against USD, EUR, GBP and AUD with tight spreads and no virtual wallet required. Algo traders can also utilize Expert Advisors (EAs) to automate their crypto trades.
- NinjaTrader - You can get exposure to micro Bitcoin futures through the CME Group’s centralized exchange, which is highly regulated by the US CFTC. Micro contracts allow you to trade a fractional size of one Bitcoin, giving you more risk control and order flexibility.
- eToro USA - eToro US offers 24 tradeable cryptoassets, with just a 1% buying/selling fee added to the spread. Additionally, there are 80 different coins available through the broker’s proprietary wallet service. You can also practice your crypto strategies easily by switching between live and demo mode. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
- Interactive Brokers - IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
- Pocket Option - Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.
- IQCent - IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
- OANDA US - Cryptocurrency trading is offered via Paxos, a separate entity from Oanda. You can speculate on the world’s biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Through the broker’s partnership with Paxos, clients can spot trade cryptocurrencies on the itBit exchange through the OANDA native platform.
- RedMars - RedMars offers 13 crypto CFDs, including the popular BTC/USD, ETH/USD, and LTC/USD. However, there's no option to buy the underlying cryptocurrency. As a comparison, eToro allows the underlying purchase of 44 cryptocurrencies with copy trading on digital currencies also supported.
- Capitalcore - Capitalcore allows traders to speculate on the price movements of just five cryptocurrencies through CFDs. Popular options like Bitcoin (BTC/USD), Ethereum (ETH/USD), and Litecoin (LTC/USD) are available. However, unlike competitors like eToro, you cannot purchase the underlying crypto directly.
- IG - IG's modest selection of 11 crypto CFDs trails top crypto brokers like Vantage which offers 40+ tokens. That said, it stands out with its crypto index, which tracks the value of the top 10 digital currencies by market cap and provides a holistic way to speculate on the value of the crypto market.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
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Coins | BTC, BCH, ETH, LTC, XRP |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | BTC 1.4%, ETH 2% |
Crypto Lending | No |
Crypto Staking | No |
Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
Minimum Deposit | $100 |
Regulator | NFA, CFTC |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
Coins | BTC |
---|---|
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Floating |
Crypto Lending | No |
Crypto Staking | No |
Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
Minimum Deposit | $0 |
Regulator | NFA, CFTC |
Account Currencies | USD |
Pros
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- You can get thousands of add-ons and applications from developers in 150+ countries
- Traders can get free platform access and trade simulation capabilities in the unlimited demo
Cons
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
Jemma Grist, Reviewer
eToro USA Quick Facts
Bonus Offer | Invest $100 and get $10 |
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Coins | BTC, ETH, BCH, DASH, LTC, ETC, MIOTA, XLM, EOS, NEO, ZEC, XTZ, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, ALGO, MANA, ENJ, BAT, MATIC, FLR, SHIBxM |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | BTC 0.75% |
Crypto Lending | No |
Crypto Staking | No |
Platforms | eToro Trading Platform & CopyTrader |
Minimum Deposit | $100 |
Regulator | SEC, FINRA |
Account Currencies | USD |
Pros
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
- The low minimum deposit and straightforward account opening process means beginners can get started quickly
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
Cons
- Average fees may cut into the profit margins of day traders
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
- There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
Coins | BTC, LTC, ETH, XRP |
---|---|
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | 0.12%-0.18% |
Crypto Lending | No |
Crypto Staking | No |
Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
Minimum Deposit | $0 |
Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
Cons
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
---|---|
Coins | BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Platforms | Web, MT4, MT5 |
Minimum Deposit | $50 |
Regulator | MISA |
Account Currencies | USD |
Pros
- Extremely fast and smooth sign-up process that takes less than 2 minutes
- The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
Cons
- The MISA is a weak regulator with limited investor protection for retail traders
- Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
Jemma Grist, Reviewer
IQCent Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Coins | BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Variable |
Crypto Lending | No |
Crypto Staking | No |
Platforms | Online Platform, TradingView |
Minimum Deposit | $250 |
Regulator | IFMRRC |
Account Currencies | USD, EUR |
Pros
- The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
- IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders
- The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
Cons
- There's no automated trading support for algo traders
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
Jemma Grist, Reviewer
OANDA US Quick Facts
Coins | BTC, ETH, LTC, BCH, PAXG, LINK, UNI, AAVE |
---|---|
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | $100 |
Crypto Lending | No |
Crypto Staking | No |
Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
Minimum Deposit | $0 |
Regulator | NFA, CFTC |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
Cons
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
- There's only a small range of payment methods available, with no e-wallets supported
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
Christian Harris, Reviewer
RedMars Quick Facts
Coins | BTC, ETH, LTC, XRP, XLM, DOT, ZEC, XMR, QTM, NEO, EOS, BCH, DSH |
---|---|
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | 65 |
Crypto Lending | No |
Crypto Staking | No |
Platforms | MT5 |
Minimum Deposit | €250 |
Regulator | CySEC, AFM |
Account Currencies | USD, EUR |
Pros
- Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
- RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading
- The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies
Cons
- While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Christian Harris, Reviewer
Capitalcore Quick Facts
Bonus Offer | 40% Deposit Bonus up to $2,500 |
---|---|
Coins | BTC, ETH, BCH, XRP, LTC |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | $45 |
Crypto Lending | No |
Crypto Staking | No |
Platforms | WebTrader, Pro |
Minimum Deposit | $10 |
Regulator | IFSA |
Account Currencies | USD |
Pros
- The Capitalcore platform provides comprehensive charting tools and a wide range of 150+ technical indicators, ideal for detailed market analysis.
- The support team are available 24/7 and responded within minutes during testing with helpful responses.
- Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
Cons
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
- Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.
IG
"IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and fast execution speeds for experienced day traders."
Christian Harris, Reviewer
IG Quick Facts
Coins | BTC, BCH, LTC, ETH, ADA, DOT, DOGE, LINK, UNI, XLM |
---|---|
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Variable |
Crypto Lending | No |
Crypto Staking | No |
Platforms | Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral |
Minimum Deposit | $0 |
Regulator | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Pros
- The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading, while IG has also added TradingView integration.
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.
- The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met.
Cons
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges.
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors.
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients.
How Do Bitcoin Brokers & Exchanges Work?
First, it’s important to understand the difference between a Bitcoin broker and an exchange.
Similar to forex, a Bitcoin exchange is simply a platform for users to deposit funds that can be exchanged for Bitcoin. This means the investor becomes the owner of an amount of Bitcoin, which needs to be stored in a crypto wallet. An exchange makes its money on the difference between the ask and sell price.
Bitcoin brokers act as middlemen between buyers and sellers to facilitate a trade. As well as having the option to buy the Bitcoin asset, brokers also allow investing on derivative products such as CFDs and binary options, enabling the trader to profit from price fluctuations without owning or storing any BTC itself. This is a key advantage of using a Bitcoin broker, with these derivative options also allowing the trader to use leverage. For traders that simply want to buy and hold or use Bitcoin, an exchange may be a good alternative.
Investors looking to buy or sell a large amount of Bitcoin will likely use an over-the-counter (OTC) broker, who finds a counterparty directly rather than trade on an exchange. This has benefits such as preventing the investor from impacting their own price point and avoiding slippage.
How To Compare Bitcoin Brokers & Exchanges
Here we discuss the most important factors to consider when comparing Bitcoin brokers.
Fees
Bitcoin fees are usually a percentage of the crypto value being purchased, though flat fees may also apply per transaction. In addition, expect to pay borrowing fees if holding a short position, conversion fees when depositing in certain currencies, account inactivity fees if the account becomes dormant, and rollover fees to hold an overnight position.
Financial Derivatives
Many Bitcoin brokers offer the option to speculate on financial derivatives as well as buying the underlying asset. This enables the use of leverage, as well as the option to open both short and long positions.
Bitcoin Exchange Traded Funds (ETFs) such as the Bitcoin Tracker Fund are a basket of securities that can be traded through Bitcoin brokers such as Interactive. They track the value of Bitcoin but trade on traditional market exchanges rather than cryptocurrency exchanges. Investors also have the opportunity to trade options and futures through Interactive Brokers, subject to meeting margin requirements.
Leverage
Leverage and margin investing is when a trader borrows capital from a Bitcoin platform so they can invest more with a lower outlay.
While this can result in higher returns, it also increases risk as losses will be amplified too. Eightcap is an example of a Bitcoin platform that provides the opportunity for traders to increase their buying power using leverage of 1:2 on all crypto-assets.
Interest
As well as Bitcoin trading, investors also have the opportunity to earn interest on BTC through a platform, which can be an excellent way to generate additional income. For example, Gemini offers 2% interest on Bitcoin holdings.
Note that this is not the same as crypto mining, which is done by individuals or as part of a mining pool.
Regulation
Using regulated Bitcoin brokers is highly recommended, as this ensures the company is abiding by certain rules and standards.
Top tier regulators include:
- Financial Conduct Authority (FCA) – UK
- Commodity Futures Trading Commission (CFTC) – US
- Cyprus Securities and Exchange Commission (CySEC) – Cyprus
- Australian Securities and Investments Commission (ASIC) – Australia
- European Securities and Markets Authority (ESMA) – European Union
However, regulation is often different for cryptos versus other assets. For example, while the FCA regulates cryptocurrency in the UK, consumers are unlikely to have access to the Financial Services Compensation Scheme (FSCS) for Bitcoin, meaning funds are not protected in the same way as when investing with traditional currency.
Equally, regulation does not apply to all countries. While the IG Group is among the top-rated Bitcoin brokers and platforms that is regulated by the FCA, one of its member companies IG Markets South Africa is not licensed to provide CFD products.
Security
2022 saw the collapse of FTX, among several other high-profile Bitcoin companies, raising questions about how some of the largest crypto exchanges manage client assets.
As a result, many traders are looking for legitimate Bitcoin firms with adequate safety and security protocols. One such measure is proof of reserves, which validates that a firm does indeed hold the BTC they claim to, meaning should users rush to withdraw funds, they have the capital to honour all requests.
Among the best Bitcoin brokers and exchanges that publish proof of reserves reports are BitMEX and OKX.
Platforms
The platform is the software provided by the broker or exchange used to carry out Bitcoin trading. The key things to look out for when researching a broker’s platform include:
- Indicators
- Chart types
- User interface
- Execution speed
- Demo account option
By signing up for a demo account, traders can try out the features offered by the platform risk-free, as well as practising technical strategies using charts and indicators. While many Bitcoin brokers offer the biggest platforms such as MetaTrader and cTrader, some also offer proprietary platforms with additional features.
AvaTrade is a Bitcoin broker that offers a vast array of platforms to suit all types of traders including their own platforms AvaTradeGO and AvaOptions, as well as the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Accounts
All Bitcoin brokers offer accounts that come with associated terms including minimum deposit requirements and leverage options. While this varies between platforms, some firms also offer several account types to suit different investing needs.
Checking account restrictions is key to ensuring BTC investing will be viable. For example, traders looking to buy Bitcoin through Interactive Brokers need a minimum deposit of a huge $10,000. The IG Group has a more reasonable minimum deposit requirement of £250, while eToro requirements vary depending on customer location and deposit method.
Bonuses
Many platforms offer Bitcoin sign-up bonuses and promotions for new customers. This includes no-deposit bonuses, which means a platform gives a live account with a free bonus balance for investing.
Usually only profit can be withdrawn rather than the bonus itself, however this provides a great opportunity to start investing in Bitcoin without any risk.
Mobile Apps
Many Bitcoin brokers and exchanges now offer mobile apps for traders to manage BTC on the go. This could be a broker specific app, or a platform one such as the MetaTrader application.
Check the app is compatible with your operating system and look out for user reviews on the App Store and Google Play. In particular, ensure you can access any indicators or features you require to execute trades, as the functionality may be more limited than on the desktop platform.
Customer Support
The best Bitcoin brokers and exchanges offer high-quality technical support that typically includes:
- Telephone
- Contact forms
- Live chat services
Additionally, make sure the customer support option you need is available at the times of day you will be investing.
Deposits & Withdrawals
Bitcoin brokers and exchanges have various requirements for depositing and withdrawing funds, which may affect how much or when you can trade. Look out for deposit currency requirements, deposit and withdrawal methods (including debit/credit card and e-Wallets) plus processing times, which can be up to several working days.
There are also some brokers that accept Bitcoin payments as an online deposit and withdrawal method, which allows for a secure and fast transfer solution.
Alternative Tools
Crypto bots are becoming increasingly popular, providing the opportunity to automatically place Bitcoin trades using logic based on asset price or technical indicators. Numerous Bitcoin brokers and exchanges exclusively provide this automated investing service, including Bitcoin Evolution, Bitcoin Code, Bitcoin Era, Bitcoin Up, Bitcoin Loophole, Bitcoin Revolution and Bitcoin Profit.
However, traders should remain cautious about the legitimacy of these Bitcoin brokers, holding them to the same standards as more traditional exchanges.
Accepted Countries
There are usually restrictions on the countries from which BTC brokers accept customers, making it necessary to check the ‘supported countries’ list before trying to open a Bitcoin account.
Pepperstone is one of the best Bitcoin brokers and platforms that accept traders registered in Australia (including Sydney), New Zealand, Thailand, the United Kingdom, South Africa (including Cape Town and Durban), Singapore, India, Switzerland, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates (including Dubai), Saudi Arabia, Kuwait, Luxembourg, Qatar, Belgium, Azerbaijan, Jordan and Chile.
Swissquote is also a great option for clients in Canada (including Toronto), Hong Kong, Turkey, Japan, Saudi Arabia, Macau, Belize, China and Lebanon, while traders in Kenya can open an account with XM.
Unfortunately, investing is not permitted by either eToro or Swissquote for customers in Iran, Madagascar, Maldives, Botswana, Cameroon, Nigeria, Namibia or Zimbabwe.
What Is Bitcoin?
Unquestionably the most famous cryptocurrency, Bitcoin is a highly volatile asset that has seen extreme surges and declines over the past 10+ years. Bitcoin was the first blockchain currency to successfully record transactions and has a higher market capitalization than any other crypto. Yet BTC was not immune to the recent turbulence seen in the digital asset market, losing more than 60% of its value in 2022.
The Bitcoin white paper was released in 2008 by the pseudonym Satoshi Nakamoto, although the true identity of Satoshi remains a mystery. The decentralized technology is based around a public ledger that can be accessed by anyone and is independent of any government or bank.
Bitcoin brokers have caught the attention of traders such that BTC price movements now have a large impact on the price of other cryptocurrencies. As well as being secure, its popularity has increased its liquidity and accessibility, with generally fewer fees versus other digital assets.
How Bitcoin Works
The Bitcoin network itself is a collection of computers called nodes. Each Bitcoin is a piece of data that is stored in a crypto wallet.
A transaction is the transfer of value between Bitcoin wallets. Transactions are verified by a network of people running computers (mining) to solve complex algorithms, who receive rewards in the form of BTC for their efforts. Once verified, the transaction is added to the public online ledger, called the blockchain.
As everyone’s ledger should be the same, this makes it extremely difficult to claim ownership of more Bitcoin than someone has, making the crypto both transparent and secure.
How To Check Bitcoin Brokers Aren’t A Scam
Here we list the most important things to check to ensure Bitcoin brokers are legitimate:
- Reviews – user reviews and expert ratings are the best way to find out other people’s experience with an exchange or platform. In particular, look out for key indicators that Bitcoin brokers are safe including their reputation, history and any awards.
- Website – does the website feel legitimate? This is another key gauge as to whether a Bitcoin platform is genuine.
- Regulatory status – check the regulator’s website, whether that’s in the USA, UK or Europe, to confirm that regulation claims are real and to further gain confidence that the Bitcoin exchange isn’t fake.
- Offers – while some Bitcoin brokers and exchanges offer good bonuses, look out for deals that sound like they’re too good to be true – as this usually means they are.
Final Word On Bitcoin Brokers & Exchanges
Bitcoin brokers enable traders to profit off the highly volatile BTC blockchain, but selecting the right exchange is key to ensure you aren’t being scammed. Also consider the key services you need, whether that’s online investing with derivatives, P2P lending platforms, or Bitcoin storage.
Review our list to ensure you’ve considered the most important factors when selecting the best BTC brokers for your strategy.
FAQ
Do Brokers Sell Bitcoin?
Bitcoin can be bought from a broker or an exchange. However, brokers also provide additional services such as access to derivatives including futures and options, allowing traders to speculate on the price of Bitcoin without owning the underlying asset.
How Do Bitcoin Brokers Make Money?
Bitcoin brokers make money through the spread, by charging commission fees, or using a hybrid fee structure. The spread is the difference between the buy and sell price, while commissions fees are usually a flat fee applied to every transaction.
What Do Bitcoin Brokers Do?
Bitcoin brokers provide investors with access to a cryptocurrency exchange, which enables them to buy and sell BTC through a platform. The platform usually also contains charts and indicators for carrying out technical analysis.
What Are The Best Bitcoin Brokers In The UK?
Whilst partly dependant on your strategy and needs, among the top 5 UK regulated Bitcoin brokers are the IG Group, eToro, CityIndex, Swissquote and XTB.
What Are Legitimate Bitcoin Brokers?
Legitimate Bitcoin brokers are regulated by reputable authorities such as the CySEC. Check for good user reviews and a credible website when searching for safe Bitcoin brokers. Also look for appropriate security measures like segregated client funds and proof of reserves.